This paper suggests a new way of measuring technological progress based on a Schumpeterian conceptualization of technological change, incorporating demand (diffusion) and supply (innovation) factors in a single model. Thus, the new measure reflects the value added created over the whole process...

The impact of technological change upon gross investment has been relatively ignored. Building upon the foundations of the analysis of technological diffusion, an empirical model of gross investment is constructed that takes due account of technological change. This model is then tested upon a...